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Multitenancy is defined as computing architecture, having one, two or more logical software examples are made as well as executed on the primary software. It permits different users to function in the same software environment same time. Each one of them have their separate resources, services and interface.

In simple words, multi-tenant helps in thinking other type of tenant. You can imagine it as the one providing housing to numerous tenants. You can do many things like providing separate home to every tenant or offer individual units to tenants in a one building. Former will include high costs, bad resources' utilization as well as poor maintenance. Latter option will remove the disadvantages. It will be cheaper, resources to every tenant will be utilize better and easy to maintain.

There are some principles that apply to Multitenancy. The moment clients install the software on desktops of the individual employees or dedicated server, it is similar to offering every tenant complete house. Doing so needs big investment and maintenance, which is quite complicated as installations or servers should be upgraded separately. In the case of small companies, approach is not the same. Despite, an organization let different users share the database applications and server. It minimizes the costs and enhances the resources' utilization as well as streamlines the maintenance.

Benefits of Multitenancy -

-- Minimize Costs -

Every application instance generally incurs specific memory amount as well as processing overhead. When multiplied through many users, cost could be substantial. It minimizes the overhead via amortizing the same over most of the users. Licensing prices of software could be reduced as everything run on the single software, hence just one software license have to be bought.

-- Easy Data Mining -

Despite of the data collected through various data sources, data for all the customers should be stored in single schema. Running queries and data mining in between the customers as well as identify the trends is quite simplified.

-- Simplify Release Management -

It simplifies the process of release management. Usually, packages contains databases changes that have to be installed and distributed on every client' server or desktop, and code. With multi-tenant model, package might just have to be installed on the single server.